Heather Harrigan

The real estate market in Valparaiso, Indiana, specifically Center Township of Porter County has been impacted by our local economic condition, unemployment rates, mortgage rates, the first-time homebuyer tax credit and the number of bank-owned/foreclosed properties that have entered the market.

The following is a chart that will illustrate the true activity of home sales within Valparaiso – Center Township*: Valparaiso, Indiana – Center Township SOLD Homes 1st 3 Qtrs 1st 3 Qtrs 2008 2009 Homes under $100,000 34 33 $100,000-$199,999 215 183 $200,000-$299,999 101 92 $300,000-$399,999 39 23 $400,000-$499,999 2 15** $500,000-$599,999 3 3 $600,000-$+ 4 _1_ TOTAL 398 350 The AVG Days on Market in 2008* was 91 days. The AVG Days on Market in 2009* was 125 days.

**The activity reflected in the $400,000 – 499,999 price range on the surface looks highly encouraging; however upon deeper analysis, this number reflects 6 units that were new construction and were more than likely under contract in 2008 and closed in 2009.

The most common question that we receive is “Have prices been dropping?” This is a complex question. In order to answer that one needs to analyze year to date changes in the specific price range of a subject property in the neighborhood or market area in which it resides and cross reference that with the cost per square footage data. In many cases, we have seen price reductions. One of the reasons for that is the number of bank-owned and builders’ spec homes that have sold at reduced amounts. This has, and will more than likely continue into the early part of next year, impact the value of homes as these sold values are often used by appraisers to establish market value of homes that are selling. The positive aspect of these bank-owned and spec homes selling is that it is reducing the amount of inventory on the market. Once we have a more balanced level of inventory on the market, we will start to see values rising.

The following chart will help to reveal the amount of inventory we have in each price range. There are currently 448 residential units FOR SALE in this area on the MLS. Active Months of on the MLS Inventory Homes under $100,000 27 6.6 $100,000-$199,999 173 8.5 $200,000-$299,999 116 12.7 $300,000-$399,999 73 23.7 $400,000-$499,999 28 19.7 $500,000-$599,999 9 27.2 $600,000-$699,999 5 † $700,000-$799,999 5 † $800,000-$899,999 4 † $900,000-$999,999 4 † $1,000,000+ 4 † TOTAL 448 †There has only been one sold unit over $650,000 in the past year in Center Township.

So, what does all of this ultimately mean? If you are interested in upgrading or downsizing, this may be the perfect time for you. Housing affordability is at an all-time high. You may be able to capitalize on today’s market by purchasing your dream home at an ideal price. Even selling your current home at a price lower than what you would initially want may allow you to trade equity and be in a better position to reap the rewards when the market changes. If you would like information specific to the value of your home, please allow me to prepare a complex market analysis for you.

*Based on information from the Greater Northwest Indiana Association of REALTORS®, Inc. Multiple Listing Service for the period January 1, 2008 through September 30, 2009.